Core Insights - Zoom Communications, Inc. reported a total revenue of $1,229.8 million for the third fiscal quarter, reflecting a year-over-year increase of 4.4% as reported and 4.2% in constant currency [4][5] - The company emphasized its commitment to an AI-first platform, highlighting the growth in adoption of its AI Companion 3.0 and Custom AI Companion, contributing to strong customer experience metrics [2][4] - The financial results indicate significant profitability, with GAAP EPS increasing by 204.5% year-over-year to $2.01, and non-GAAP EPS rising by 10.1% to $1.52 [4][5] Financial Performance - Total revenue for Q3 was $1,229.8 million, with Enterprise revenue at $741.4 million, up 6.1% year-over-year, and Online revenue at $488.4 million, up 2.0% [4][5] - GAAP operating margin stood at 25.2%, while non-GAAP operating margin was 41.2% [5][36] - Operating cash flow reached $629.3 million, marking a 30.2% increase year-over-year, with a cash flow margin of 51.2% and free cash flow margin of 50.0% [4][5][37] Shareholder Returns - The company repurchased approximately 5.1 million shares in Q3, totaling 32.5 million shares repurchased under the current plan [4][9] - The Board of Directors authorized an additional $1.0 billion for stock repurchase, increasing the total authorization to $1.310 billion [9][11] Customer Metrics - The number of customers contributing over $100,000 in trailing 12 months revenue increased by 9.2% year-over-year, totaling 4,363 customers [4][13] - The trailing 12-month net dollar expansion rate for Enterprise customers was reported at 98% [13] - Online average monthly churn remained stable at 2.7% year-over-year, with 74.4% of total Online MRR from customers with a continual term of service of at least 16 months [13] Financial Outlook - For Q4 FY 2026, total revenue is expected to be between $1.230 billion and $1.235 billion, with non-GAAP income from operations projected between $477.0 million and $482.0 million [13] - The full fiscal year 2026 revenue guidance is between $4.852 billion and $4.857 billion, with non-GAAP income from operations expected between $1.955 billion and $1.960 billion [13]

PresentationEmmanuel Jude Dillipraj RajakarierGroup CEO, COO & Director Good afternoon, everyone, and thank you for joining us today for the update for quarter 3. We, at Minor, of course, very much appreciate your interest and taking the time to join us here today, whether you're joining us here in person or whether you're dialing in today overseas. So a very warm welcome. Before I actually dive into the details, let me start -- let me also start by just giving some overview about the global markets and wha ...

Earnings Reports Overview - The current earnings season is nearing its end, with notable companies reporting during the holiday-shortened week [1] - Retail investors are particularly focused on earnings reports from major companies [1] Company-Specific Earnings Reports - WeRide Inc. (NASDAQ:WRD) and LexinFintech Holdings Ltd. (NASDAQ:LX) reported before the market opened on November 24, both showing better-than-expected results, leading to stock price increases [2] - Zoom Communications Inc. (NASDAQ:ZM) is expected to report third-quarter results after the market closes on November 24, with analysts predicting earnings of $1.44 per share and revenue of $1.21 billion [3] - Alibaba Group Holding Ltd. (NYSE:BABA) will release its Q2 earnings report before the market opens on November 25, with expectations of adjusted earnings of 81 cents per share and revenue of $34.43 billion [3] - Retailers Kohl's Corp. (NYSE:KSS) and Best Buy Co. Inc. (NYSE:BBY) are anticipated to provide insights into consumer behavior with their reports on November 25 [4] - Cleanspark Inc. (NASDAQ:CLSK), Dell Technologies Inc. (NYSE:DELL), and Zscaler Inc. (NASDAQ:ZS) are set to report after the market closes on November 25 [5] - Li Auto Inc. (NASDAQ:LI) and EHang Holdings Ltd. (NASDAQ:EH) will report their results before the market opens on November 26, alongside Deere & Co. (NYSE:DE), which has consistently beaten analyst expectations for 12 consecutive quarters [6] Market Schedule - U.S. stock markets will be closed on November 27 for the Thanksgiving holiday [8] - The stock market will have an early closure at 1 p.m. ET on November 28 [9]

Core Viewpoint - Zoom, once a pandemic favorite, is facing challenges as the market shifts back to in-person work and competition increases from platforms like Microsoft Teams and Google Workspace [2][3][4] Company Performance Expectations - Earnings per share (EPS) is anticipated to be $1.43, with revenue expected to exceed $1.22 billion [4][6] - Key metrics to watch include the performance of Zoom's contact center business, which is seen as a growth area [6][8] Competitive Landscape - Zoom must adapt its strategy to compete with Microsoft and Google, particularly in the realm of AI integration and collaboration tools [9][10][13] - The company is focusing on democratizing its AI features to enhance user engagement without increasing costs [9][11] Future Positioning - Zoom needs to transition from being solely a communication tool to a platform that facilitates collaboration and integrates with other services [7][12][14] - The success of Zoom's enterprise sector and its ability to attract large clients will be critical indicators of future performance [8][16] Industry Outlook - The tech sector is experiencing seat compression due to AI-driven layoffs, which may impact demand for Zoom's services [16][17] - The performance of Zoom could serve as a bellwether for the mid-market segment, reflecting broader trends in the tech industry [16][18]

Group 1 - Zoom Communications Inc. is expected to report a "decent quarter" according to Jim Cramer, who highlights the competitive pressure from Microsoft Teams as a significant challenge for Zoom [1] - The company provides an AI-driven platform that includes video meetings, messaging, phone systems, and collaborative work tools, along with services like virtual events and workflow automation [2] - There is speculation about potential acquisition interest in Zoom, which could impact its future growth and market position [1]

Group 1: Walmart Inc. (NYSE: WMT) - Walmart reported better-than-expected third-quarter financial results on November 20, raising its fiscal year 2026 revenue and adjusted EPS outlook [1] - The company is experiencing growth in e-commerce and its membership model, with management providing strong forward guidance [1] - Walmart is set to transfer its listing from NYSE to Nasdaq, effective December 9 [1] Group 2: Vistra Corp. (NYSE: VST) - Vistra has seen a 25% pullback over the past few months, but analysts maintain an Outperform rating [2] - BMO Capital raised the price target for Vistra from $236 to $245, while Evercore ISI Group increased the price target from $237 to $243 [2] Group 3: Leidos Holdings, Inc. (NYSE: LDOS) - Leidos reported better-than-expected third-quarter results on November 4, with quarterly revenue growth of 7% year over year to $4.47 billion, surpassing the analyst consensus estimate of $4.28 billion [3] - The company also raised its full-year EPS guidance [3] Group 4: Zoom Communications Inc. (NASDAQ: ZM) - Zoom is scheduled to report quarterly earnings on Monday, with analysts expecting earnings of $1.44 per share, up from $1.38 per share in the previous year [4] - The consensus estimate for Zoom's quarterly revenue is $1.21 billion, compared to $1.18 billion a year earlier [4] Group 5: Price Action - Vistra shares fell 3% to close at $168.59 [6] - Leidos shares rose 0.5% to close at $186.49 [6] - Walmart shares fell 1.7% to settle at $105.32 [6] - Zoom shares gained 0.3% to close at $78.63 [6]

Group 1 - Wall Street anticipates Zoom Communications Inc (NASDAQ:ZM) to report quarterly earnings of $1.44 per share on revenue of $1.21 billion [2] - Lee Enterprises, Inc. (NYSE:LEE) announced the resignation of CFO Tim Millage, effective February 28, 2026, with shares gaining 1.6% to close at $4.56 [2] - Keysight Technologies Inc (NYSE:KEYS) is expected to post quarterly earnings of $1.83 per share on revenue of $1.38 billion, with shares gaining 1.8% to close at $172.71 [2] - Wrap Technologies Inc (NASDAQ:WRAP) filed for a mixed shelf offering of up to $200 million, with shares gaining 6.6% to close at $2.11 [2] - Agilent Technologies Inc (NYSE:A) is expected to report quarterly earnings of $1.58 per share on revenue of $1.83 billion, with shares gaining 4.3% to close at $151.25 [2]

Core Insights - Zoom's stock price has been in a prolonged consolidation phase due to declining demand for its services [1] - The stock has been trading between support and resistance levels of $56.27 and $91 [1]

Core Insights - Investors will have a break next week due to the market closure on November 27 for Thanksgiving, allowing time for assessment and reflection after a challenging week for Wall Street [2] - Despite the end of the U.S. government shutdown, some key economic reports are still being canceled due to insufficient survey data, impacting market expectations [3] Earnings Reports - Several companies are scheduled to report earnings next week, including Alibaba Group (BABA), Dell (DELL), Deere & Company (DE), Analog Devices (ADI), Best Buy (BBY), HP (HPQ), and DICK'S Sporting Goods (DKS) [4] - Specific earnings highlights include: - Monday: Agilent Technologies (A), Zoom Communications (ZM), Symbotic (SYM) [5] - Tuesday: Alibaba, Analog Devices (ADI), Dell Technologies, Best Buy (BBY), Autodesk (ADSK), Workday (WDAY), Zscaler (ZS), HP (HPQ), DICK'S Sporting Goods, J.M. Smucker (SJM), and NIO (NIO) [5] - Wednesday: Deere, Li Auto (LI) [5] - Thursday: Intuitive Machines (LUNR) [6] - Friday: Frontline Plc (FRO), Buckle, Inc. (BKE) [6]

Core Insights - Canva was last valued at approximately $42 billion during a share sale [1] - The cofounders of Canva, Obrecht, Melanie Perkins, and Cameron Adams, have appointed Kelly Steckelberg, the former CFO of Zoom Video Communications Inc., as a top financial executive [1] Company Developments - Canva's valuation indicates strong market confidence and growth potential [1] - The hiring of Kelly Steckelberg suggests a strategic move to enhance financial leadership and operational efficiency within the company [1]